PROTECTED SOURCE SCRIPT

VITALITY INDEX

By MoonRally

Updated

Will describe in person through private messaging

Release Notes

Reach out to me for explanation

Release Notes

let's get it

Release Notes

We are on Discord, PM me here for invite

Release Notes

Vitality Index (VI) is a numbering system used to quickly and accurately measure the overall market sentiment for any asset. The range of values for VI has been normalized to between -100 and +100 for almost any asset and at any chart resolution. I think it is a much better FEAR and GREED index than alternative.me/crypto/fear-and-greed-index/. Use the following guidelines to properly read the VI:

--> Color of VI is either RED, ORANGE, or GREEN, and is used to indicate the market cycle or overall sentiment. If red, sellers (bears) are in control of the market. If green, buyers (bulls) are in control. If orange, neither sellers or buyers have control, and the market may be in transition. Note, the color of VI does not change according to a change in chart resolution, and is therefore a static portion of the index. This allows the user to analyze any time frame in the context of the actual, overall market sentiment.

--> The oscillator line can be above or below the 0-line. VI is built such that the output line is highly attracted to the 0-line. Think of the 0-line as a magnet. We all know that most markets are only "trending" a small percent (less than 30%) of the time. If this is true, and I believe it is, then why do so many indicators (especially oscillators) keep providing evidence of action when the market is consolidating, or moving sideways? VI solves this by amplifying real signals and minimizing noise and it does it remarkably well.

--> Consider accumulating (buying) an asset slowly when the VI signal is red and falling below -20 and consider deleveraging (selling) an asset when the VI signal is green and rising above +20. Consider more aggressive trading actions as the signal line continues to move away from the 0-line.

--> If the market has already turned and entered a new phase, VI can be used to provide the user more confidence to join a market trend on dips and pops. In other words, if the user was unable to trade near the bottom or top of a phase, VI can still be used with varying chart resolutions in accordance with retracement values, moving averages, etc. to join the market.

--> Higher chart resolutions are more stable and productive to establish confidence in trends. This is true of nearly every indicator on the market, especially other momentum/strength oscillators.

--> Reach out to me in Discord. Here is my tag.... CryptoBug#5032

Note 1: It takes more than a year of data to properly build the VI profile, which results in an unchanging orange line.
Note 2: VI is a lagging indicator by design due to trade offs required to eliminate noise from non-trending markets. This is true in both directions and will allow traders to maximize profits from a trade.

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This script is published closed-source and you may privately use it freely.

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